Expedia vs MakeMyTrip Which Offers More Value?

Expedia Group Inc. and MakeMyTrip Limited are two leading players in the online travel booking industry. Expedia, based in the United States, operates a portfolio of travel brands including Expedia.com, Hotels.com, and Vrbo. MakeMyTrip, headquartered in India, is a prominent online travel agency serving customers in India, the Middle East, and Southeast Asia. Both companies have experienced growth and success in recent years, but their stocks have performed differently due to various factors such as market conditions, competition, and strategic decisions.

Expedia or MakeMyTrip?

When comparing Expedia and MakeMyTrip, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Expedia and MakeMyTrip.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Expedia has a dividend yield of -%, while MakeMyTrip has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Expedia reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, MakeMyTrip reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Expedia P/E ratio at 22.42 and MakeMyTrip's P/E ratio at 51.00. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Expedia P/B ratio is 18.09 while MakeMyTrip's P/B ratio is 10.28.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Expedia has seen a 5-year revenue growth of 0.18%, while MakeMyTrip's is -0.20%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Expedia's ROE at 92.08% and MakeMyTrip's ROE at 21.92%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $180.02 for Expedia and $105.52 for MakeMyTrip. Over the past year, Expedia's prices ranged from $107.25 to $190.40, with a yearly change of 77.53%. MakeMyTrip's prices fluctuated between $41.11 and $113.61, with a yearly change of 176.36%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.